Comments on Fourth Bi-monthly Policy 2016-17 by George Alexander Muthoot, Managing Director, Muthoot Finance Ltd

“The 25 bps cut by the RBI to boost the liquidity in the system is a welcome move. We expect it will support the economy’s investment demand and uptick in credit environment. A relief on the cost of funds is awaited eagerly by the corporate India, which should help them to improve financial health and plan for the next leg of growth. With the pro-growth stance of the RBI, it gives a clear hint to India Inc to push for growth, take investment decisions as it can now foresee rates to soften further.

So in summation the interest rate scenario should change for good in FY17.”